Freemium, Premium. Which business model to choose?
Historically, there are two main types of webcam platform business models, Premium and Freemium. Which one to choose? What are the benefits of each of these models for camgirls? We will answer these questions in this article.
The Premium model
The Premium, also known as cam-to-cam is the first model that came into existence. Created in the 1990s, this model developed slowly until the early 2000s, limited at the time by the speed and spread of consumer internet connections. The creation of sites like LiveJasmin in 2001 as well as the democratization of high-speed internet connections then made this market explode.
The operation is simple, models chat with members on a free chat. At this stage, no “hardcore” content is shared. The goal is to hook a member in order to go on cam to cam exclusively with them. This private show is obviously paying. No hardcore content is accessible until the visitor has paid to access the private show.
The advantage of this operation is that it guarantees a certain security of the private life to the camgirls. Indeed, pornographic content is not freely available. There is little chance that someone you know will come across one of your videos in a situation you would not like to share with them. The second advantage of this exclusivity is that it allows you to create a privileged relationship with your viewers. It’s up to you to take advantage of this to build their loyalty.
The major disadvantage of this type of site is the difficulty of getting your first viewers. They will have to convince them to join you in a private show without revealing any erotic content. You can only count on your charm and your ability to provoke desire. Listening and discussion are your main assets. This type of site naturally has less traffic than Freemium sites because there is no erotic content freely available. The platforms are therefore obliged to buy traffic, which has an impact on the commission they charge you. Generally, the latter is higher on Premium sites than Freemium. However, it can be noted that this higher commission is counterbalanced by more qualified visitors who are willing to pay than on Freemium sites.
The Freemium model
The Freemium model came a little later. MyFreeCams, the first such site, was created in 2004. It works even more simply than premium. The shows are free and accessible to everyone. But then, how do camgirls earn money? Thanks to the tips left by users.
Tokens (tokens or currency from the webcam platform) are given by users to the camgirl to reward her for her show or to ask her to perform an action. They also allow to vibrate her sextoy if she is equipped with connected sextoys like Lovense and the platform is compatible. Note that it is also possible to switch to private show as for the Premium model. The major difference is that other users can continue to spy on the show in exchange for some tokens.
The downside of these platforms is cultural. In Europe, the tips/tipping culture is not very developed in everyday life. So you will have to put even more emphasis on the interactivity of the show to get tips. This is a point not to be neglected if you want to address a mainly French-speaking audience. You will also have to deal with the fact that there are always a few paying customers for several hundred people watching. This can create some tension on the chat that you will need to keep under control.
There is also a lot of competition on these platforms. Therefore, it will be important to stand out and also promote yourself on social networks to make your mark.
The primary advantage of this is that you will be able to make your mark.
The primary advantage of Freemium platforms is the traffic they generate. The biggest cam sites are based on this Freemium model like the market leader Chaturbate. They have a huge visibility on the web. The historical Freemium sites are American with a lot of American customers. If you have ever been to the USA, you know how important tips are in their country. So you will find big American tippers on these sites. The more creative and exhibitionist you are, the more tips you will get.
But then, which one to choose?
In conclusion, we cannot say that there is one model better than the other. The choice will depend on your personal preferences following the positive and negative points we have highlighted in this article. For a beginner, the best advice we can give you is to try both. Try each site for a few weeks to see which type suits you best.
The best advice for a beginner is to try both.
You can find a summary of the different platforms on this page.